Moving to cloud computing gives companies undeniable advantages.These advantages include enhanced security, enhanced back-up capabilities and access to greater expertise. Moreover, the diversity of the Cloud offering allows companies to not only meet most of their computing needs, but also to only pay for those they actually use… which leads to real savings. But beyond that, are there any financial benefits to be reaped from using cloud computing? After all, moving to cloud computing not only means paying only for the services used, but also reducing the need to use one’s own servers by being part of a group of service users from a single major service provider. And the following two features are also very likely to lead to savings as well. Let’s look more closely at this.
Reduced Capex
The owner of servers must bear both their acquisition and maintenance costs. Even if the accounting department amortizes these expenses over several years, capital expenditures (Capex) are often substantial. By using cloud computer, reduced capex means you can invest these amounts elsewhere… which translated into tremendous benefits.
System Savings
Moreover, when we manage our own servers, to protect against system failures we often buy more equipment than we really need. In fact, some people go as far as duplicating their entire system. However, these additional costs vanish when one moves to cloud computing. It might of course be thought that part of the cost of cloud computing covers this type of assurance, but it goes beyond comparison. This is also true for the physical space gained given the reduced need for storage, back-up, replacement and cooling equipment.
Along the same lines, that is foreseeable savings, we must take into consideration the electrical bill and physical space required. We all know that servers consume a lot of energy, and that they even consume energy while in sleep mode. As well, unless you are one of these rare organizations that use their servers at full capacity, your computer equipment will result in wasted energy costs. This is not the case for the cloud computing supplier, which operates its equipment constantly given that many users are benefiting from the infrastructure at the same time.
Getting Added Value from Employees
Lastly, it is at the employee level that the benefits from moving to cloud computing become the most obvious. Often, more than half the company investments in IT are for labour… A work force that is primarily busy with maintaining and repairing systems, in other words, with solely ensuring that everything is working. Cloud computing takes these maintenance tasks largely away from your IT staff so they can focus on more value-added services.
In short…
To sum up, what will be the real benefits of cloud computing for each of you? In addition to switching to operating expenditures (Opex) mode, which means only paying for what you really use, you will reduce your Capex, which involve major investments in equipment to protect you against potential failures… the result: substantial savings. And don’t forget the immediate energy savings on transferring to cloud computing. Add to this the fact that Opex mode enables companies to maintain IT consumption in line with revenues, and to better forecast their budgets, which is a tremendous advantage. We should also point out that enhanced computing efficiency improves the overall performance of your company, which is worth its weight in gold.
Because you are unique, you know that no offer on the market will perfectly meet all your computing needs. So, it is by combining various offers that you will achieve this… and this is where we come in at E-SPACE. Our philosophy is based on the support and provision of personalized services, which will enable you to transform costly operational projects into value-added services provided by your employees.
